Bitcoin and Digital Currencies are Officially Recognized by Japan as Money
Bitcoin is finally accepted in the land of the rising sun!
Bitcoin and digital currencies is recognized as money in Japan with the new proposed laws. It seems that Japanese banks and government see that the future of the new money, thus they officially recognize it and embrace it.
The Cabinet in Japan had finally come to an agreement to approved Bitcoin bills as well as other digital currencies, as Japan Times reported on March 4, 2016. This is because they believe that there is a need to expand their banking sector in reaching the businesses of information technology. In the emerging parlance, the link between IT and bank sector is called FinTech or Financial Technology.
The Japan cabinet finally agreed that Bitcoin and digital currencies are important and it will be recognized by the new bills created. This new bills aimed to make virtual currencies as one of the payment method in every transactions. There is also a potential that this new law will allow Bitcoin and digital currencies to be transferred digitally.
Unlike many other countries who are struggling with the regulation of bitcoin and other digital currencies, Japan makes it legitimate.
This new law is great news for every bitcoin enthusiast because what seems vague in the past is now having some light and their dreams are turning into reality that digital currency is the future of money. This Japan new law is the first big step. Now, that bitcoin has been regulated, the hesitant investors and other business sectors will now have confidence in using it and investing on it.
Bitcoin and Digital currencies Registration in Japan
The Japan government is trying to bring Bitcoin and digital currencies under the management of Financial Services Agency, the one that manages the transaction of Japan’s official currency (Yen). If FSA accepts these digital currencies, it only means that there will be exchanges registration to protect people from money laundering act.
Regardless of this move by Japan, Digital currencies communities are still positive about the whole thing. They believe that it will erase the bad impression about Bitcoin since the incident happened in Mt. Gox where people lost trust in this digital currency, thinking that Mt. Gox is bitcoin. It is also a great opportunity for Japan to let the people know that they are very active with the pursuance of innovative technology throughout their nation.
The CEO of Zaif Exchange or Tech Bureau Corp, Takao Asayama, warns that Japan is not only considering bitcoin but all of the digital currencies like cryptocurrencies. These will serve as a payment method extension. Registration and capitalization is required at FSA. Segregated management is also being forced with regards to exchanges and deposits. Everything is not clear yet since there is still no definite plan as to how they can audit and segregate Bitcoin and digital currencies. The positive thing about this law is that it can prevent fraud coin schemes but on the negative side, it can also hinder small tech start-ups in getting benefits from crypto technologies.
Zaif Exchange CEO added that Japan is ready to take this revolutionary step since they are experimenting about the digital currencies since the beginning of the year and it is working well.
Even if Bitcoin is now recognized as money in Japan, it doesn’t mean that it has the same status with Japanese Yen. The CEO and co-founder of Input Output, Charles Hoskinson said that:
“In terms of a government’s perspective, until you can pay your taxes with it, it’s not on par with the government’s money.”
However, this is only the beginning for Bitcoin and welcoming step of Japanese cabinet is something to take inspiration by the other nation’s jurisdictions.